Tencent Game Threat Seen Overdone in NetEase’s $8 Billion Selloff
source link: https://finance.yahoo.com/news/tencent-game-threat-seen-overdone-020000009.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Tencent Game Threat Seen Overdone in NetEase’s $8 Billion Selloff
Tencent Game Threat Seen Overdone in NetEase’s $8 Billion Selloff
(Bloomberg) -- The $8 billion wipeout in NetEase Inc.’s market value over the past three weeks on concerns of competition from a new Tencent Holdings Ltd. game ignores the company’s strong market position in China.
Most Read from Bloomberg
Bulls believe that NetEase will rebound, thanks to the massive popularity of its Eggy Party, as well as a promising pipeline of new titles. They also note that the company is a “pure play” in games, which are more recession-proof than other consumer segments where Tencent is exposed.
Hong Kong-listed shares of NetEase are down 10% from a November high on the perceived threat from Tencent’s Dream Star, which is due to be released Friday. NetEase is still up 45% this year, far outpacing Tencent as well as Chinese technology and global game peers.
“We believe NetEase is macro-defensive with its solid longevity legacy games and track record of new games,” Julia Pan, an analyst at UOB Kay Hian Hong Kong Ltd., wrote in a note. Moreover, party games are the fastest-growing genre, and Eggy Party has “dominated” the segment, Pan said.
Analysts have unanimous buy ratings on NetEase’s Hong Kong-listed shares, with an average price target implying a gain of 30% over the next year, according to data compiled by Bloomberg. The stock’s put-to-call ratio based on total open interest has been falling this month, suggesting that options traders are also becoming more bullish on the stock.
‘Party Royale’
Released in May 2022, Eggy Party remains among the top app downloads in China. Its so-called “party royale” format is popular with more casual users, especially young women. Players of the game control egg-like characters that compete in a variety of minigames and obstacle courses.
Zacks3 Small-Cap Growth Mutual Funds for Alluring Returns
Below, we share with you three top-ranked small-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1.
3h ago
ZacksTop 5 Consumer Staples Stocks for a Stable Portfolio in 2024
We have narrowed our search to five consumer staples stocks with strong growth potential for 2024. These are: CELH, PG, KHC, TAP, ELF.
3h ago
ReutersGogoro to make e-scooter bikes in India, rolls out battery swap network
Taiwan's Gogoro has started manufacturing electric scooter bikes in India and will set up around 100 battery swap stations by mid-2024, its CEO said on Tuesday, marking its entry into one of the world's fastest-growing vehicle markets. Gogoro has already committed to investing $1.5 billion in western Maharashtra state including in a factory where it will build its CrossOver e-scooter in partnership with Foxconn, Horace Luke told reporters in New Delhi. It has begun production of the e-scooter which will first be sold to delivery fleet operators and bike taxis, with a variant for personal use to be launched next year, said Luke, adding it will also export these vehicles from India.
2h ago
ReutersExclusive-Venezuela to receive 27% more income from PDVSA after sanctions easing-document
Venezuela's government foresees a 27% increase in its income from state-run oil company PDVSA next year, according to a document seen by Reuters, after a relaxation in U.S. sanctions and amid planned presidential elections and stagnant production. The administration of President Nicolas Maduro estimates that its total spending next year will be equivalent to $20.5 billion, according to an unpublished 2024 budget proposal. Sanctions relief, which is set to last until April unless the U.S. backtracks, has increased prices for Venezuelan crude and analysts expect the income to lead to more social spending as the government tries to ensure support in the presidential vote, where Maduro is expected to run again.
2h ago
The Wall Street JournalStocks to Watch Tuesday: Alphabet, Hasbro, Oracle, AstraZeneca
[**Alphabet (GOOGL)**](https://www.wsj.com/market-data/quotes/GOOGL): Google [lost an antitrust case](https://www.wsj.com/tech/google-loses-antitrust-case-brought-by-epic-games-651f5987) over the market power of its app store brought by the videogame maker Epic Games.
1h ago
BenzingaDisney In Talks With Mukesh Ambani's Reliance For Mega Indian Media Merger
This story was first published on the Benzinga India portal. Walt Disney Co. (NYSE: DIS) and India's Reliance Industries Ltd are reportedly in advanced negotiations to merge their Indian media and entertainment divisions. A successful merger, spearheaded by Reliance's Mukesh Ambani, could lead to the creation of the South Asian nation's most extensive media enterprise. The proposed merger involves Reliance Industries creating a subsidiary of Viacom18 to incorporate Star India through a stock swa
7h ago
Associated Press FinanceFinland to reopen 2 out of 8 border crossings with Russia after a 2-week closure over migrant influx
Finland's government will reopen two out of eight border crossing points with Russia later this week, officials said Tuesday, following a sudden influx of migrants in November. Prime Minister Petteri Orpo's Cabinet temporarily closed the entire 1,340-kilometer (830-mile) border two weeks ago over concerns that Moscow was using migrants to destabilize Finland in an alleged act of “hybrid warfare.” The Kremlin has denied that Russia is encouraging migrants to enter Finland and has said that it regrets the Finnish border closures.
1h ago
BloombergTraders Trim Bets on 2024 Fed-Rate Cuts After Inflation Report
(Bloomberg) -- Traders trimmed their expectations for the Federal Reserve to aggressively ease monetary policy next year after a report on inflation that was largely in line with forecasts.Most Read from BloombergJPMorgan Is in a Fight Over Its Client’s Lost $50 Million FortuneGoldman Trader Who Was Paid $100 Million Since 2020 to Step DownRaimondo Vows ‘Strongest Possible’ Action on Huawei’s Chip BreakthroughAbu Dhabi Is the World’s Newest Wealth Haven for BillionairesHarvard’s Deepening Disuni
1h ago
Motley FoolCould Alibaba Stock Double in 2024?
Alibaba stock is trading at a historically low multiple and deserves your attention.
1h ago
BloombergOracle Plunges as Cloud Slowdown Stokes Expansion Concerns
(Bloomberg) -- Oracle Corp. plunged after reporting that cloud sales growth had slowed for a second straight quarter, stoking investors’ concerns that the software maker’s expansion into a competitive market isn’t panning out as expected. Most Read from BloombergJPMorgan Is in a Fight Over Its Client’s Lost $50 Million FortuneGoldman Trader Who Was Paid $100 Million Since 2020 to Step DownRaimondo Vows ‘Strongest Possible’ Action on Huawei’s Chip BreakthroughAbu Dhabi Is the World’s Newest Wealt
58m ago
The Wall Street JournalOracle Stock Falls After Earnings Miss Estimates
Oracle shares [(ORCL)](https://www.wsj.com/market-data/quotes/ORCL) looked set for one of their biggest drops this year, after the software giant reported lower-than-expected quarterly revenue. The stock recently stood 10% lower.
1h ago
InvestopediaWhat common ETFs track the banking sector?
Learn about common bank ETFs, and find out which ones focus on the international financial sector, big banks, regional banks and community banks.
16h ago
ReutersHasbro to lay off 900 more employees amid weak toy sales
(Reuters) -Hasbro said on Monday it would cut another 900 jobs globally, nearly a year after the toymaker announced it would reduce 15% of its workforce amid weaker sales. Hasbro had said in January it would cut about 1,000 full-time positions. At the end of 2022, Hasbro had employed about 6,490 people worldwide, according to a regulatory filing.
18h ago
Recommend
-
9
TechTencent and NetEase shares pare losses after China tightens gaming rules for kidsPublished Tue, Aug 31 202112:33 AM EDTUpdated Tue,...
-
5
Gaming giants Tencent and NetEase stocks dive overnight after threat of further Chinese regulation Government officials tell gaming industry to 'break from the solitary focus of pursuing profit'
-
9
Chinese regulators summon gaming firms including Tencent, NetEase- PingWestChinese regulators summon gaming firms including Tencent, NetEase September 8, 2021 10:19 pm Chinese regulators on Tuesday summon gaming firms including Tencent...
-
11
ByteDance takes on Tencent Music and NetEase's Cloud Music by launching the algorithm-based music streaming app Soda ByteDance takes on Tencent Music and NetEase's Cloud Music by launching the algorithm-based music streaming app Soda...
-
11
China approves 60 new game licenses in June, exclude Tencent and NetEase China approves 60 new game licenses in June, exclude Tencent and NetEase 12 hours ago China’s gaming regulator granted p...
-
8
67 game titles were approved by China in July, while Tencent and Netease failed to make the cut again 67 game titles were approved by China in July, while Tencent and Netease failed to make the cut again ...
-
7
China licenses 69 online games, Tencent and NetEase again off the list China licenses 69 online games, Tencent and NetEase again off the list 17 hours ago On Monday, China's gaming regulator an...
-
10
Xiaomi News Lei Jun was not interested in Tencent QQ, but tried to buy NetEas...
-
5
Beijing finally grants licenses to NetEase and Tencent to publish new paid games...
-
1
12:37...
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK